July 2019 Market Perspective

July was a month of waiting… on the Federal Reserve and more. Leading up to the Fed’s July 31 meeting, markets were tranquil with volatility well below average. However, the comments following the announcement of a 25 bps interest rate cut – a first in over 10 years – were a curveball that left investors caught off guard as Chairman Powell tamped down expectations of future cuts. Tranquility ended abruptly, volatility picked up and markets sold off as barriers to trade became more threatening.